Got an offer to buy for 13k-18k per acre from some outfit called Nickel River Royalties. The highest offers I was getting before was about 8k I think. It just got drilled so somebody must feel good about production! In the offer they use the line “I worked with you in the past on an Oil and Gas lease and have been trying to get in touch with you”. That was pure comedy! It is quite creative. Can’t wait to see what production is.
I got the same offer letter with the same “I worked with you in the past” line haha.
Same offer but about 20 miles south of you. Have you reached out to them? Doubt it’s a real offer on my interest. If so, they’re paying 3X more than anyone else…
No. The lease company did offer 10k, I just checked. It is real. They offer that, because they make a whole lot more easily. Can’t wait!
They would need about 7 wells to get their money back in 10 years if they really paid 18K an acre for a mineral interest leased at a 3/16th royalty. This is at $55 oil . Do they plan to drill Miss. wells up in 9N-4W? If not, that could really limit the amount of wells drilled.
If that is a real offer, that is substantially above market value that far east in the township. Definitely worth some consideration in my opinion.
I will ask them what the offer is for the heck of it. You would think 18k would be for a 1/4 lease. They also mentioned leasing for 4000-7000 per acre.
I got a reply from the dude. He said the offer (13-18k) was based on a 1/4 ! I replied so, 18k is a 1/4? So wouldn’t 3/16 be 13K ? Dude is throwing out pie in the sky apparently. He did say 9-10k depending on amount of acreage.
If they are paying $18,000/ac at 1/4, 3/16 would be $13,500/ac. $13,500/ac is way more than anything on the east line of 9n-4w is worth. It’s definitely worth exploring, but you should clarify the terms first.
I am not selling even if they offered 18k. Owning minerals is like owning land. Long term I am going to make my money.
I agree with you to some degree. At the end of the day it’s a choice based on the situation, and whether or not you want to take the calculated return up front vs. seeing what may happen, for better or worse. My pop was in the business and once told me that you should always entertain an offer, everything has a price and you never know when someone is going to reach it. Glad to hear there’s some interest on in that part of the township. Good luck to you my friend!
I just got the same letter from Nickel River but for land in far West Texas!
I’ve tried to call the offer letter 4 times in 2 weeks. Zero response.
Anyone had any luck?
I emailed and the response took a week. I think it is by design. They want to see how bad you want to sell, and are waiting for a desperate follow up email I think ! I never did that. At the end of the day, they are offering what everybody else is, 9-10k per acre.
If you decide to sell, never hand over a deed without getting a cashier’s check. No drafts!
Hey Joe, do you happen to have their contact info? I’ve been having trouble reaching Nickel River!
I will clean my desk and see if I can find it. Sorry I just saw this !
Hi Joe, thank you so much! I appreciate your help!